Small and medium enterprises (SMEs) are the backbone of Western Balkan economies but until recently received relatively little attention from policy makers.

Governments focused on consolidating macroeconomic stabilisation and the restructuring and privatisation of large companies. The adoption in 2003 of the European Charter for Small Enterprises contributed to a change in policy perspective.

The 2007 SME Policy Index presents the first comprehensive and comparative assessment of progress made in implementing the Charter.

The SME Policy Index uses collaborative benchmarking to measure progress in the ten dimensions of the Charter:

Education and training for entrepreneurship

Cheaper and faster start-up

Better legislation and regulation

Availability of skills

Improving online access for tax filing and company registration

Getting more out of the single market

Taxation and financial matters

Strengthening the technological capacity of small enterprises

Successful e-business models and top class business support

Developing stronger, more effective representation of small enterprises

Governments of the region have taken action based on the results of the report through the creation in April 2007 of a South East European Investment Committee which aims to develop detailed guidelines on how to implement reforms in priority areas including the SME environment.